The Securities and Exchange Commission (SEC) has considered favorably the fixed-rate bond offering by Converge Information and Communications Technology Solutions, Inc. and initial public offering by Asia Pacific Medical Center (APMC) Bacolod, Inc.
In its March 22 meeting, the commission en banc resolved to render effective the registration statements of Converge covering up to PHP20 billion of bonds under shelf registration, and of APMC Bacolod for up to PHP1 billion of common shares, subject to the companies’ compliance with certain remaining requirements.
Converge may offer the PHP20-billion fixed-rate bonds in tranches within three years.
For the first tranche, the listed internet provider will offer to the public up to PHP5 billion of bonds due 2027, with an oversubscription option of up to PHP5 billion.
Assuming the oversubscription option is fully exercised, the company could net up to PHP9.87 billion from the offer.
Proceeds will be used to fund the company’s capital expenditures in connection with plant equipment and other property, plant, and equipment and intangible assets for the expansion of its nationwide fiber network.
The bonds comprising the first tranche will be offered at face value from March 14 to 18, and will be listed on the Philippine Dealing & Exchange Corp. on March 25, according to the latest timetable submitted to the SEC.
Converge engaged BDO Capital & Investment Corporation as the issue manager for the transaction, who will also work with BPI Capital Corporation as joint lead underwriter and bookrunner.
APMC Bacolod will offer to the public 3,600 blocks composed of 10 shares each, at an offer price ranging from PHP250,000 to PHP400,000 per block. The shares will be traded over the counter.
Net proceeds from the offer could amount to PHP997.52 million, which the company will use for the building and construction, loan payment, working capital, and other expenses related to its PHP2.6-billion medical facility in Bacolod.
The company is currently constructing a seven-story, 248-bed hospital with a total floor area of 38,084.03 square meters located at Lacson Street in Barangay Bata, Bacolod City in Negros Occidental.
The intended market for the IPO will be medical practitioners and their relatives, as well as the public.
Subscribing to the offer shares is a prerequisite for physicians and medical specialists to practice at APMC Bacolod.
Physicians looking to hold clinics at the hospital must have paid in full at least one block or 10 shares and must have undergone the required screening process and minimum requirements prescribed by the hospital.